MADURAI: The Tamil Nadu Chamber of Commerce and Industry has urged the Goods and Service Tax (GST) council to revert the action of hiking the tax rate from 18% to 28% for as many as 143 products. In a press release, the chamber noted that following the third wave of Covid-19, the trade and industrial sector, especially the micro, small, and medium enterprises (MSMEs), is now on a gradual recovery path. However, sales have already been hit hard by 14.5% wholesale price inflation and 7.5% of retail price inflation, they added.
Meanwhile, the Agrofood Chamber of Commerce and Industry, in a press note, said the Union Finance Ministry had taken a policy decision in November 2017 to keep only super luxury, demerit and sin goods in the 28% GST slab, and over 200 products ranging from chewing gum to chocolates, to beauty products and wrist watches were shifted from the 28% tax slab to 18% and lower rates.
"It was assured that only five to seven products would be included in the top 28% slab. On account of this tax reduction, the revenue from tax collection did not dip, but instead the monthly GST collection climbed to over `1,30,000 crore on an average. If tax rates are further reduced, the revenue would grow more due to increased compliance. We request Prime Minister Narendra Modi to intervene in the matter," they urged.